UMPQ - Umpqua Holdings Corporation: Balancing Act Continues

• Management continues to balance downward pressure on net interest income with offsetting net mortgage banking revenue while initiating a new round of expense reductions.
• Worst-case adjusted 2020 earnings are estimated at $0.99 per share, an 85% dividend payout ratio - a dividend cut remains a possibility.
• Core bank earnings are weak at about $0.34 per share YTD 3Q 2020 compared to the $0.63 per share dividend for the same period.
• UMPQ is not a compelling value, but at some point will make a nice speculative purchase, preferably at a discount to tangible book.

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